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DocuSign, leading provider of electronic signature technology reported better than expected Q2 earnings as digitization of documents continues to become standard practce. Many had expected revenue growth to slow after the work-from-anywhere boom. $DOCU actually raised revenue guidance for Q3 and FY22.

DocuSign

Docusign Inc NASDAQ: DOCU Report Earnings After Close Thursday

 $0.47 Beat $0.39 EPS AND $511.80 Billion Beat $482.50 Billion Revenue Forecast

Earnings

DocuSign reported a loss of $25.5 million, a loss of 13 cents per share in its fiscal second quarter. Earnings adjusted for one-time gains and costs, were 47 cents per share. The results beat Wall Street expectations average estimate of seven analysts surveyed by Zacks Investment Research of earnings of 39 cents per share. DOCU posted revenue of $511.8 million in the period, also exceeding Street forecasts. Five analysts surveyed by Zacks expected $482.5 million.

DocuSign is the eSignature pioneer and established itself as THE Brand in that space. The shift away from paper documents for both personal and business purposes is only accelerating much as it did from bank statements to bills. The movement is solidifying growth catalysts for the company. The eSignature software continues to be common practice when you sign your mortgage, rental, healthcare, insurance, or a variety of other types of documents.

Market Reaction Docusign NASDAQ: DOCU

$310.13 +15.16 Market Close

Highlights

  • Strong yr/yr growth of 45% in the year-earlier period
  • Top-line soared by nearly 50% yr/yr to $511.8 mln.
  • A key factor underlying the robust growth rate is the company's international expansion.
  • After surging by 84% last quarter, international revenue jumped by 71% in Q2.
  • Billings climbed by 47% to $595.4 mln, crushing the company's prior forecast of $549-$561 mln.

DOCU Earnings Q2 2021

Outlook

For the current quarter ending in November, DocuSign said it expects revenue in the range of $526 million to $532 million compared to $521 mln forecast. DOCU guided FY22 above expectations, projecting revenue of $2.078-$2.088 bln ahead of $2.05 bln consensus estimate.

DocuSign has been expanding its offerings for businesses and enterprises, facilitating a rapid corporate transition towards electronic signature, identity verification, and contract generation. Fitting in exactly with the pandemic practices and some would argue the powers that be's (PTB) preferred practices as government and poltical control continues in many countries, specifically the US.

Rising adoption from businesses and individuals is clearly illustrated across a number of DOCU's impressive metrics. With DOCU's Agreement Cloud a business can use DocuSign CLM to create contractual agreements using pre-populated information that's pulled from other sources. Once generated, stakeholders can review and approve agreements within the contract, which can be automated throughout its entirety.

Another option for businesses is DocuSign Insight which utilizes AI-powered contract analytics to quickly and efficiently review agreements, identifying potential risk points for the related parties.

Source: DocuSign, AlphaStreet

From The TradersCommunity News Desk

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